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Coffee Futures Options Trade Entry 13: Update

January 29th, 2009 · No Comments

Unfortunately nothing too exciting is going on, but a couple things have changed and are worthy of an update.  After hitting an equity low of about 2 grand, we’re back up at around 4.  I didn’t want to take the chance of riding the 3 May 140 calls to expiration again (even though i think we’ll see that price ahead of April), so I sold them and purchased a single July 140 call.  Definately a reduction in leverage and position, but with such a small amount of equity I need to play this safe and win a few.  This should give me the time at least to see if coffee futures have indeed turned the corner.

On the bright side, news from Central and South America of tightness in the coffee pipeline is starting to become more prominent.  This could ignite an impressive rally before long in the style of 1997, where a two month spike to $3.50 rocked the markets.  I’ll continue to follow this futures options trade here, but I also created another website just to deal with the impending bull run in coffee futures.  On that blog I’ll focus more on information specific to coffee trading, coffee futures trading, and coffee fundamentals, so that this website doesn’t become any more onesided.

Tags: Commodities

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